GIFP BUSINESS PARK

The Business Park of Giurgiulesti International Free Port provides investors an excellent location on the border with the European Union, in a low cost environment, with tri-modal transport infrastructure and a unique tax and customs framework.

Investors can set up their businesses within the business park by leasing land, offices, warehouses or open storage facilities. In addition, Danube Logistics SRL offers potential investors associated services ranging from logistics to various support and administrative services.

Investor Questionnaire

Inexpensive, Multi-lingual Labor Force

Moldova has a population of 3.6 million (2016). Out of that total, 70% of the population is multi-lingual, and 80% attain secondary education. The average monthly wage is about USD 370/EUR 300.

Proximity to EU, CIS and Turkish Markets

From Moldova exporters can easily reach EU single market with 508 million consumers, the CIS + Ukraine market with 282 million consumers as well as the Turkish market with 80 million consumers.

Fast Growing Emerging Market
In 2017 the Republic of Moldova achieved an economic growth of 4.5%, agricultural production increased by  8.6% and industrial production increased by 4.2% (change 12 months!!!).

Free Trade Regimes

Since 2001 the Republic of Moldova is a full-right member of the WTO. In addition Moldova has signed Free Trade Agreements with 43 countries: EU-28 member states (DCFTA), CIS member-states, Members of Central European Free Trade Agreement and Turkey. Furthermore Moldova benefits from preferential trade agreements with Norway, Canada, Switzerland, Japan and USA.

Investment Opportunities

There are numerous investment opportunities in the agriculture, manufacturing and logistics sectors.

Agriculture and Food Processing
Moldova possesses over 2.5 million hectares of highly fertile agricultural land and sufficient water resources. This, together with the favorable climatic conditions and the predominantly well-educated and inexpensive work force, as well as the free trade regimes, form favorable conditions for investments.

Manufacturing
The combination of well-educated, inexpensive workforce and free trade agreements calls for lucrative investments in labor intensive industries (i.e. automotive suppliers, textile industry etc).

Logistics
Moldova serves as an: ideal location for storage and distribution of goods to Central, Eastern European, CIS and Turkish markets; good connection by road, sea, river, narrow-gauge rail and broad-gauge rail network, as well as air.

 

Tax Incentives & Favorable Customs Regime

The favorable tax and customs regime applicable to GIFP Business Park residents can be summarized as follows:

  • 75% reduction of corporate income tax during the first 10 years of operation (currently 3% instead of 12%) and a 50% reduction for the remaining period until 2030;
  • exemption from excise taxes and import VAT;
  • exemption from import and export duties;
  • exemption of import duties into the rest of Moldova for goods that originate from Giurgiulesti International Free Port;
  • exemption of foreign employees from social insurance contributions;

Unlike in Moldovan free economic zones, where activities are typically limited to certain types of activities, the residents of GIFP Business Park have the right to undertake any activity that is ordinarily allowed in Moldova. Investors may also be 100% foreign owned, freely repatriate their profits and are not subject to revenue based administration fees or minimum investment obligations.

Quality of GIFP Business Park Infrastructure

GIFP Business Park is a green field development with newly constructed utility and road infrastructure. All land plots leased by residents benefit from road electricity, water, gas and fibre-optic telecommunication connections.

Low Operating Expenses

With an official average wage of only 370USD/300 EUR per month, Moldova’s multi-lingual labor force remains the most competitive labor force in Europe. Against this background Moldova has developed as a favorable location for companies active in labor intensive manufacturing, e.g. textile companies, automotive suppliers and call centers.

Apart from favorable payroll expenses, GIFP Business Park residents also benefit from relatively inexpensive utility charges:

Electricity — 1,40 MDL (0.11 $) per kWh for 6-10 kV; 1.38 MDL (0.12 $) per kWh for 0.4 kV
Gas — 4,8950 MDL (0.34 $) per m³ low pressure

Available Human Resources
GIFP Business Park close proximity to Romania (Galati 17km) and Ukraine (Reni 8km) attracts work force not only from Moldova but also from Romania and Ukraine.

Moldova (up to 60 km) – 100,000 population
Galati (Romania – 17 km) – 330,000 population
Reni region, Ukraine (8 km) – 41,000 population

Lease of Land

There is a selection of land available for long-term leases connected to electricity, gas, water, telecommunications, road infrastructure as well as in close proximity to rail and port infrastructure.

Lease of Warehouse, Open Storage and Production Facilities

A selection of types of warehouses, open storage halls or production facilities that are offered for short or long — term lease within GIFP Business Park. All areas are connected to basic necessary infrastructure such as electricity, gas, water, telecommunications, road infrastructure as well as in close proximity to rail and port infrastructure.

Lease of Offices

There are small and large office spaces available for short-to long-term leases within GIFP Business Park. All offices are connected to electricity, gas, water, telecommunications, road infrastructure as well as in close proximity to rail and port infrastructure.

Advisory Services

Upon request the management of GIFP Business Park will provide residents and potential residents with advisory services on issues ranging from the incorporation of a company in Moldova, permitting and other legal matters, project management, construction permitting/management, procurement issues as well as recruitment of human resources.


latest news
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EBRD seeks to safeguard operations of Moldova’s Giurgiulesti port

The European Bank for Reconstruction and Development (EBRD) is enforcing rights under its financing and security documents with regards to Danube Logistics Holding BV’s shareholding in Danube Logistics SRL (Danube Logistics), the operator of Giurgiulesti International Free Port in the Republic of Moldova.

 

The EBRD’s enforcement action, which commenced on 18 March 2021, aims to ensure the uninterrupted operations and ongoing expansion of Giurgiulesti International Free Port and to safeguard the EBRD’s financial interests in the project.

 

The EBRD is seeking to prevent any attempt at redirecting funds out of Danube Logistics as a result of the external administration imposed on the company, due to concerns that it will put the company in severe financial difficulties.

 

The action is in response to the decision by a Moldovan bailiff on 25 February to appoint an external administrator of the assets of Danube Logistics, following a disputed claim against one of Danube Logistics Holding BV’s ultimate beneficiaries.

 

The EBRD considers this appointment an interference with the running of the company, having a direct negative impact on its ability to continue to operate and repay its debts, as well as conflicting with EBRD’s legitimate interests as a lender holding security over the shares in Danube Logistics and as an economic beneficiary of those shares.

 

The EBRD has supported Danube Logistics’ development of Giurgiulesti International Free Port since 2005. As of today, the EBRD is Danube Logistics’ largest creditor as well as the main beneficiary of Danube Logistics Holding BV’s shareholding in Danube Logistics.

 

Giurgiulesti International Free Port is the Republic of Moldova’s only sea-river port located on the river Danube. On average, the port facilitates the international trade of Moldovan companies with more than 50 countries every year.

 

Source: https://www.ebrd.com/news/2021/ebrd-seeks-to-safeguard-operations-of-moldovas-giurgiulesti-port.html

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25.02.2021
THE DUTCH AMBASSADOR VISITED GIURGIULESTI INTERNATIONAL FREE PORT

— 934 thousand tons of transshipped goods via GIFP in 2020, despite restricted exports of cereals in the second half of 2020 due to severe drought and the Coronavirus pandemic

— Bustling activities at GIFP with almost completed, underway and upcoming new construction projects

— Fair access of investors to the rules of law in the Republic of Moldova hampered by the ongoing attempt to expropriate Danube Logistics Holding BV’s and the EBRD‘s interests in Danube Logistics SRL via the Moldovan justice system

 

The operations and construction projects at Giurgiulești International Free Port (GIFP) were the key topics discussed during the visit of His Excellency Mr. Roelof van Ees, the Ambassador of the Netherlands to Romania and the Republic of Moldova, and Mr. Floris van Eijk, Head of the Dutch Embassy Office in the Republic of Moldova, at GIFP on Wednesday, February 24. Mathias von Tucher, the General Director of Danube Logistics SRL, outlined that GIFP continues to support Moldova’s international trade despite the challenges caused by the pandemic and, in particular, the 50% reduction of grain exports (i.e. -250 thousand tonnes compared to 2019) due to the bad harvest. GIFP still recorded a transshipment volume of 934 thousand tons in 2020, proving the importance of the unobstructed shipment of goods by maritime and river vessels for Moldovan importers and exporters.

 

Mr. von Tucher stated that the development of GIFP is in full swing with new facilities in construction: the ethanol and wine storage facilities are almost finalized, and the works at a state-of-the-art crushing plant for production of vegetable oil are progressing fast. In addition, two further resident companies envisage to start the construction of grain storage facilities.

 

The General Director of Danube Logistics SRL also discussed with the Dutch Ambassador the ongoing attempt to expropriate Danube Logistics Holding BV’s and the EBRD‘s interests in Danube Logistics SRL via the Moldovan justice system. H.E. Mr. Roelof van Ees expressed his concern about the current legal proceedings and recent court decisions: “It is crucial for the Republic of Moldova to uphold the rule of law and protect the legitimate interests of foreign investors in the country. Otherwise, Moldova will miss out on much-needed foreign direct investment and economic growth.”

 

Danube Logistics SRL, the operator and general investor of Giurgiulesti International Free Port, is wholly owned by the Dutch company Danube Logistics Holding B.V. According to a participation agreement the EBRD is entitled as of today to 65% of the dividend and share sales proceeds related to Danube Logistics Holding BV’s shareholding in Danube Logistics SRL.

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22.02.2021
GIFP TRANSSHIPPED HEAVY EQUIPMENT FOR A LARGE FOOD PROCESSING COMPANY IN MOLDOVA

The equipment shipped by the Belgian logistics specialist Projects & Industrial Logistics BVBA from the port of Straubing (Germany) reached its destination at Giurgiulesti International Free Port (GIFP) yesterday, on February 21st, after a 10-day journey down the Danube river.

 

It took 3 hours to our experienced cargo terminal operators at GIFP to complete successfully the unloading of 8 heavy pieces of up to 42 tons using our mobile heavy cargo crane. The oversized pieces with a width of up to 7 m were loaded on special heavy cargo trucks to be further delivered to Südzucker Moldova. Given the extra width of these loaded units, a separate temporary exit has been constructed so as to accommodate the transportation process.

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16.11.2020
DANUBE LOGISTICS COOPERATES WITH UTM IN DIONYSUS PROJECT

Danube Logistics is an Associated Strategic Partner within the DIONYSUS project, a project co-funded by European Union funds under the Danube Transnational Programme with the objective of “Integrating Danube Region into Smart & Sustainable Multi-modal & Intermodal Transport Chains”. Danube Logistics is in close collaboration with the Technical University of the Rep. of Moldova (UTM), a European Neighbourhood Instrument Project Partner and as such leading the Moldovan aspects of the DIONYSUS project.

 

On 13 November 2020 a delegation from UTM headed by Associate Professor Dr Victor Ceban, Head of the Department of Transport, visited Giurgiulesti International Free Port. Mathias von Tucher, General Director of Danube Logistics, presented the port facilities and its multi-modal logistic and intermodal connections. Potentials and barriers for future developments were discussed taking into account bottlenecks of hinterland connections. Danube Logistics is looking forward to collaborate with the experts of the UTM on the DIONYSUS project.

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